Pound May Get Weaker
Each evening we focus on the most interesting aspects for the upcoming trading day. The comments are based on observations of the nightly updates of the Futures and Market Bias pages. They are provided for educational purposes only and are not intended to be direct trading advice. Also, keep in mind that these remarks are made up to 12 hours in advance of the markets opening. Therefore, overnight events may alter the outcome of these observations.
At the time this is being published, the S&P Globex Futures are trading .10 points lower and the bond market is trading up 1 tick.
The March British Pound [BPH0>BPH0], on the Turtle Soup Plus One Sell List, hit new 20-day highs today (a) but failed to follow through with any vigor. This suggests that its longer term downtrend may still be intact.
March Sugar [SBH0>SBH0], mentioned last night, closed poorly today and looks poised to resume its downtrend. Continue to look for a shorting opportunity here.
January Unleaded Gas [HUF0>HUF0], on the Momentum 5 List, gapped lower on today’s open but rallied to close at life-of-contract highs. This action forms a bullish outside day. Look for a buying opportunity here.
March Bonds [USH0>USH0], mentioned recently and on the Pullbacks From Lows List, close poorly and look poised to resume its downtrend. Look for a shorting opportunity here.
Best of luck with your trading on Thursday!
Dave Landry
PS-Reminder: Protective stops on every trade!